) reported adjusted first quarter 2013 earnings of 44 cents per
share, beating the Zacks Consensus Estimate of 40 cents on higher
revenues. The adjusted earnings per share exclude one-time items
but include stock-based compensation expense.
TripAdvisor reported revenues of $229.9 million in the first
quarter, up 25.1% from the year-ago period. Related-party
) totaled $60.5 million, up 17% year over year.
Revenues by Product
were $179.4 million, up 24% from the year-ago quarter, and
represented 78% of total revenue. Revenues from
were $24.6 million, up 14% year over year, and comprised 11% of
Subscription, transaction and other
revenues totaled $25.9 million, up 51% year over year, and
represented 11% of total revenue.
Revenues by Geography
Geographically, on a year-over-year basis, Americas totaled
$131.7 million, representing 57.0% of revenues. Revenues from
EMEA (Europe, Middle East and Africa) region were $71.3 million,
constituting 31% of total revenue, while revenues from
Asia-Pacific region totaled $26.9 million, representing 12.0% of
TripAdvisor reported operating expenses of $130.5 million, up
28.6% from $101.5 million incurred in the year-ago quarter.
General and administrative and technology and content expenses
were both up as a percentage of sales from the year-ago quarters,
while selling and marketing expense declined. The net result was
a GAAP operating margin of 38.4% compared with 40.0% in the
Reported pre-tax income was $84.4 million, up from $71.1
million in the year-ago quarter. Pre-tax margin decreased 200
basis points year over year to 36.7%.
On a GAAP basis, TripAdvisor recorded a net profit of $62.3
million or 43 cents per share compared with $48.1 million or 35
cents per share in the year-ago quarter.
TripAdvisor generated adjusted net profit of $63.1 million
compared with $49.4 million in the year-ago quarter. Pro forma
earnings per share came in at 44 cents compared with 36 cents in
the last quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the first quarter with cash, cash
equivalents and short-term investments of approximately $406.2
million versus $486.4 million in the prior quarter. Accounts
receivables were $113.3 million, up from $81.5 million in the
Cash flow from operations was $43.7 million versus $29.7
million in the year-ago quarter. Capex was $9.3 million versus
$7.3 million in the year-ago quarter. Free cash flow increased
54% year over year to $34.4 million.
TripAdvisor, Inc. is an online travel research company, which
continues to witness robust top-line growth in every quarter. The
company delivered a decent first quarter, with both earnings and
revenues above the prior-year figures, helped by a stronger
travel market all over the world.
Though we are encouraged by the company's strong fundamentals
and improvement in traffic and hotel shoppers in the quarter,
management states that the new investment in a brand marketing
campaign will likely impact revenue and EBITDA growth in the near
We believe the opportunity in the Asia/Pacific region is
significant and is likely to remain one of the strongest drivers
of the company's business over the next few quarters, since
online penetration in many Asia/Pacific markets remains
However, lack of visibility and macro uncertainty may keep the
share price range bound in the near term. Over the long term,
TripAdvisor is well positioned for growth, given its expanding
user base, improving margins and increasing monetization of
social and mobile platforms.
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Other
stocks that have been performing well and are worth considering
), carrying a Zacks Rank #1 (Strong Buy) and
Giant Interactive Group
), carrying a Zacks Rank #2 (Buy).
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